December 9, 2022

Markets:

Stock futures fell Friday after wholesale prices rose more than expected in November, putting a damper on some hopes that inflation may be cooling off.

November’s producer price index showed wholesale prices rise 0.3% and 7.4% over the previous year, topping the estimated 0.2% gain expected by economists polled by Dow Jones. Core PPI, which excludes food and energy, rose 0.4% last month, topping an estimate of 0.2%.

Friday’s data comes as investors brace for next week’s busy economic calendar, with another key inflation print — the consumer price index — due, and expected to indicate whether inflation is subsiding.

Next week, the central bank is expected to deliver a 50 basis point hike at the conclusion of its December policy meeting. While the increase would be smaller than the Fed’s previous four hikes, concerns have mounted over whether the Fed can architect a soft landing and prevent a recession.

Portfolio:

We enter the last trading session of the week holding positions in CCL, RUN, and M. We are positioned well for the activity we see hitting this market over the next week.  Although it's Friday, and we typically do not like to add new set-ups on a Friday, queue is firing and we could see a set-up or two emerge today.  Keep an eye on 3950 and where we close today.  Be ready today and let's have a great session.